Credit is Not the Deciding Factor to Borrow Money

I know what you are thinking. When is credit never ever a factor when it comes to borrowing money? This is all but an impossible scenario, right? After all, how many times have you approached a bank or a conventional lending institution and you've had to undergo a credit check? More than this, how many times have you been denied for a loan, or not given the best terms and conditions, because you didn't have a very high credit score? I understand why you would be quite skeptical about the whole "credit is not a deciding factor" line.

However, there really is a financial option wherein you would not have to consider your credit history or credit rating. I am talking about payday loans. Payday loans are very similar to other kinds of loans that you can find in the market today. However, payday loans offer you one of the biggest perks that you can ask for - no credit check!

So how do payday loan providers determine whether a borrower is worth lending money to or not? After all, they do need to have some sort of assurance that they will be getting their money back, right? Well, payday loan lenders have several basic requirements that they ask from their borrowers. The main thing that takes the place of a credit check, however, is the proof of a regular source of income.

If you are employed, then you will have no problems with regard to this requirement. All that you need to do is to make copies of your most recent pay stubs and furnish the payday loan lender with these. Naturally, the higher your salary, the better it is. Normally, though, the average salary will be enough for a payday loan lender to approve a loan.

How about if you are not employed by a company and you run your own business instead? You can still apply for a payday loan, do not fear. All you need to do is make copies of your financial statements and then give them to the payday loan lender that you want to borrow money from.

Some additional thoughts on the proof of financial capability. If you are employed, some payday loans would want to ask you how long you have been with your current company. Some lenders would add the stipulation that you have to have been with your current company for at least 3 months. This is to ensure that you have some sort of job stability and that you will stay in your job long enough to pay off the payday loan.

As you can see, these requirements are not so hard to meet and if you are still thinking that a payday loan is not as hassle-free as it seems because of these additional requirements, think again. Compare them to the credit check that would certainly be required by other kinds of lenders and I bet that you will be thankful that for payday loans, credit is not a deciding factor.